An Ambush in the Oil Market

While equities drift today, as the S&P 500 Index is seemingly stuck in a 1930-1950 range now, crude oil sharply reversed lower after popping immediately following the inventory report this morning. 

On the updated daily chart for the USO, ETF for crude oil, below, note the triangle consolidation for nearly the past month is at risk of breaking lower yet, which is sure to throw a wrench in the notion that crude has put in some type of meaningful low. 

In addition, note that energy titans like CVX SLB remain persistently weak, even when oil was rallying this morning, a divergence we noted for Members in real-time. 

Based on the action this afternoon, it sure seems as though SLB may have been the true tell all along.

As you might imagine, most things energy related, including SCTY in the solar space, are getting hit and are still at risk of further downside within the context of corrective charts.